November 23, 2015

A bill has been introduced in the U.S. House of Representatives that would allow parents to use funds from a health savings account or flexible spending account to pay for the collection and storage of umbilical cord blood in a private bank.

Sponsored by U.S. Reps. Erik Paulsen (R-Minn.) and Ron Kind (D-Wis.), the Family Cord Blood Banking Act would allow use of pre-tax HSA or FSA funds to pay for the collection and storage of the stem cell-rich cord blood.

Cord blood banking currently is not an authorized expense for either of the accounts, which are designed to help pay for healthcare not covered by insurance.

“After the birth of a child, parents are often immediately faced with a decision of whether to have blood and tissue collected and stored in case of future illness,” Paulsen said.